Six Continents Hotels highlights success of online initiatives and outlines 2003 e-commerce goals
As the first hotel company to offer web bookings more than seven years ago,
Six Continents Hotels, at its annual Conference in San Diego, highlighted the success of its online initiatives, and outlined its aggressive 2003 E-commerce goals.
We have seen a significant impact on the hotel industry since the Internet emerged nearly eight years ago -- and Six Continents Hotels has been instrumental in this tremendous growth, said
Eric Pearson, vice president of E-commerce for Six Continents Hotels.
From the Internet's starting point in 1995, it took us just two years to book one million dollars in revenue from online reservations. Last January, we booked a million dollars in a single day. And earlier this year, we passed another major milestone -- $2 million booked in a single day direct to our Web sites.
One of the most important elements in the success of Six Continents Hotels Internet bookings has been the company's industry-leading Lowest Internet Rate Guarantee. The Guarantee promises if a consumer finds on the Internet a lower rate publicly viewable and bookable on another Web site for the same hotel and accommodations for the same dates and finds it within 24 hours of making his or her reservations, Six Continents Hotels will honor the lower rate plus give an additional 10 percent discount, upon its verification of the rate by Six Continents Hotels. Since its launch in May, some critics have accused the Guarantee of starting a price war and dwindling profit margins. A six-month review proves differently.
According to initial highlights:
- Revenue growth for Six Continents Hotels' Internet bookings have shot up 80 percent over last year -- compared to Internet bookings in general, which averaged 40 percent;
- Hotels are regaining control of their inventory and capturing the margins that would have otherwise gone to the wholesalers;
- Challenges to the Guarantee average about 1 out of 1,000 bookings, or less than 1/10 of one percent of people who book on the Internet confirming Six Continents Hotels' pricing is the best available.
According to
Forrester Research, online hotel bookings will double in four years from $6.9 billion this year to $14.7 billion making travel the number one activity for Internet lookers and bookers.
Continued Pearson,
Clearly there is a great opportunity and potential with the Internet, and our goals for 2003 reflect the enormous upside this channel represents.
Six Continents Hotels Internet objectives for 2003 include:
- Growing Internet direct revenue over 40% by continuing to offer new products and services, such as last-minute getaway packages and top destination Web sites featuring Six Continents Hotels;
- Driving demand for the brand Web sites by expanding geographical reach with regional sites available in multiple languages, offering targeted online promotions, and taking stronger actions to bias Internet search engines so that consumers are not hijacked to third-party web wholesalers;
- And ensuring that all Six Continents Hotels properties are maximizing the benefits of the Internet by instituting new training courses for hoteliers, which cover pricing, positioning, and prospecting on the Internet, including ways to maximize the benefits of the Rate Guarantee.
All of our activities will focus on delivering the best product at the best available price for our guests, stated Pearson.
Consumers want to book directly with brands they recognize and trust and with 50 years behind us, we have the most recognized and trusted brands in the world. Pearson went on to say,
Ultimately, our Rate Guarantee and our Web sites are also about ensuring our guests Book with Confidence. Confidence they're getting the best available rate. Confidence they actually have a reservation when they arrive. Confidence there is no hidden booking fees. And confidence their security and privacy are always protected.
Theodore Koumelis
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Thursday, November 21, 2002